Written by 4:53 PM Quarterly Earnings Views: 6

Dominion Lending Centres tops $70B of funded volume in 2022

Dominion Lending Centres and its subsidiaries ended 2022 with $70.6 billion in funded volume, a 10% decrease from 2021, the company reported this week.

First National earnings

Dominion Lending Centres and its subsidiaries ended 2022 with $70.6 billion in funded volume, a 10% decrease from 2021, the company reported this week.

In the fourth quarter, the company funded $13.8 billion in mortgage volume, up 33% year-over-year.

DLC Group is a leading network of mortgage professionals with over 8,000 agents in more than 540 locations. The company operates through Dominion Lending Centres as well as its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc.

The company attributed the year-over-year decrease in sales due to record volumes in 2021, along with headwinds in 2022 that included rising interest rates.

“In assessing fiscal 2022, it’s important to note that the business experienced record results in fiscal 2021, achieving over 50% growth in funded volumes compared to fiscal 2020,” Gary Mauris, Executive Chairman and CEO, said in a release.

“We believe that the rising interest rate environment, coupled with low housing inventory levels, negatively impacted funded volumes in fiscal 2022, resulting in a 10% reduction in funded volumes year-over-year,” he added.

Financial highlights

DLC’s 2022 funded volumes were 37% above 2020 results.

On its 2022 volumes, DLC earned revenue of $70.7 million, while revenue in the fourth quarter fell 34% year-over-year. Net income for the year was $12.3 million, up from a loss of $3.9 million in 2021.

Commenting on the operating margins, Mauris noted the company experienced various one-time expenses in the fourth quarter, including Preferred Share liability. The company repurchased over 230,000 common shares in 2022 at an average price of $2.90.

Looking ahead, Mauris said the company expects the housing market to return to normal transaction levels over the next 12 to 18 months.

“We expect future annual adjusted EBITDA margins to fall in line with prior years,” Mauris noted.

“We remain optimistic for fiscal 2023 and beyond as we remain committed to recruiting mortgage professionals to expand our network and we continue to onboard more of our brokers onto our proprietary connectivity platform Velocity.”

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Last modified: March 30, 2023

Steve Huebl is a graduate of Ryerson University's School of Journalism and has been with Canadian Mortgage Trends and reporting on the mortgage industry since 2009. His past work experience includes The Toronto Star, The Calgary Herald, the Sarnia Observer and Canadian Economic Press. Born and raised in Toronto, he now calls Montreal home.

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